Mge Energy, Inc.

MGEE trades at 21.9 times earnings for a utility expected to grow earnings 5.5% a year.

If you own MGEE, you are paying up for a very steady business with very little room for mistakes.

mgee

energy mid cap updated mar 6, 2026
$81.50
market cap ~$3B · 52-week range $76–$84
xvary composite: 73 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
MGE Energy sells electricity and natural gas to customers around Madison, Wisconsin through its main utility subsidiary.
how it gets paid
Last year Mge Energy made -$34M in revenue.
why it's growing
Revenue grew 2.6% last year. Performance benefited from continued deployment of renewable energy projects and a return to more typical seasonal heating demand following the unusually mild winter conditions experienced.
what just happened
MGEE finished 2025 with EPS of $3.72, up 12% from $3.33 in 2024.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
21.9x trailing p/e — priced about right
2.5% dividend yield — cash in your pocket every quarter
7.5% return on capital — nothing to write home about
xvary composite: 73/100 — average
What they do
MGE Energy sells electricity and natural gas to customers around Madison, Wisconsin through its main utility subsidiary.
This is a local monopoly with receipts. MGE serves 170,000 electric customers in Dane County and 180,000 gas customers across seven Wisconsin counties. Monopoly utility → one approved provider in your area → your bill keeps showing up, which makes revenue steadier than most businesses.
energy mid-cap regulated-utility dividend wisconsin
How they make money
-$34M annual revenue · their business grew +2.6% last year
total revenue
-$34M
+2.6%
The products that matter
regulated electric utility service
Madison Gas and Electric
170,000 electric customers
this is the operating core. you own a local customer base that does not shop around every quarter. that stability is the product.
service territory
regulated earnings stream
Utility earnings base
11% roe · 7.5% roc
those returns tell you what kind of stock this is. it earns enough to justify owning, but not enough to justify pretending it is a hidden compounder.
steady, not fast
shareholder payout
Dividend stream
2.5% yield
the payout matters because utility investors usually want income plus calm. here you get both, but the check is modest enough that valuation still matters.
income layer
Key numbers
21.9x
trailing p/e
P/E → stock price divided by past earnings → so what: you are paying a premium multiple for a utility projected to grow earnings 5.5% a year.
$3.72
2025 eps
Earnings per share → profit divided by shares → so what: MGEE grew EPS 12% in 2025 from $3.33 to $3.72.
2.5%
dividend yield
Dividend yield → annual cash payout as a percent of stock price → so what: you get some income, but not enough to hide a bad entry price.
$792M
long-term debt
Long-term debt → money owed over many years → so what: debt is 21% of capital, which is manageable but keeps rates mattering.
Financial health
A
strength
  • balance sheet grade A — very strong financial position
  • risk rank 2 — safer than 80% of stocks
  • price stability 90 / 100
  • long-term debt $792M (21% of capital)
  • return on equity 11% — $0.11 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market

You invested $10,000 in MGEE 3 years ago → it's now worth $12,080.

The index would have given you $13,880.

same period. same starting point. MGEE trailed the market by $1,800.

source: institutional data · total return
What just happened
beat estimates
MGEE finished 2025 with EPS of $3.72, up 12% from $3.33 in 2024.
Revenue rose about 10% to $744M in 2025. Electric revenue increased 7%, while gas revenue rose 18%, giving the utility a stronger year than its usual slow-and-steady profile.
$744M
revenue
$3.72
eps
n/a
n/a
the number that mattered
The key number was 12% EPS growth, because that is unusually strong for a utility expected to grow earnings only 5.5% a year longer term.
source: company earnings report, 2026

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What could go wrong

the top risk is multiple compression on a slow-growth regulated utility.

∘
med
valuation leaves less room for disappointment
21.9x trailing earnings and roughly 19.4x FY2027 EPS are reasonable for quality, but rich for a stock built on steady utility growth.
if investors decide they want more yield or a cheaper entry, the stock can fall without the business doing anything dramatic.
∘
med
one service territory cuts both ways
MGE serves 170,000 electric customers in Dane County. That concentration is the moat and the concentration risk at the same time.
local regulation, local demand, and local weather matter more here than they would at a broader-footprint utility.
∘
med
profitability is stable, not cushioned
11% return on equity and 7.5% return on capital are respectable. They are not wide enough to shrug off a lot of regulatory or cost pressure.
if allowed returns tighten or costs climb faster than expected, earnings pressure shows up quickly because there is no high-margin segment to absorb it.
~
low
the revenue feed is noisy enough to distort the short-term story
the page shows -$34M of annual revenue while the long-range estimate sits at $865M. That mismatch is too large to wave away.
it does not change the underlying business, but it does mean you should anchor on balance sheet, valuation, and returns data until the feed is fixed.
the clean quantifiable risk is valuation: 21.9x trailing earnings, roughly 19.4x FY2027 EPS, and a 2.5% yield leave MGEE needing to stay boring in exactly the right way.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings update
with 100/100 predictability, you are not hunting fireworks. you are checking whether management keeps the script intact.
data
the revenue-feed anomaly
the snapshot shows -$34M in annual revenue while FY2029 estimates point to $865M. if that does not get cleaned up, revenue trend work stays compromised.
flow
institutional buying versus selling
95 buyers versus 103 sellers in 4q2025 is a shrug. a real shift either way would tell you more than this quarter did.
valuation
whether the premium multiple holds
21.9x trailing p/e and a 2.5% yield work if investors keep paying for safety. they work less well if income alternatives get more attractive.
Analyst rankings
earnings predictability
100 / 100
in human-speak, analysts think this business is about as forecastable as utilities get.
risk rank
2
that means lower risk than most stocks in the market. you own defense, not fireworks.
price stability
90 / 100
the share price tends to move with utility calm. great for sleep, less great if you want torque.
source: institutional data
Institutional activity

95 buyers vs. 103 sellers in 4q2025. total institutional holdings: 21.7M shares.

source: institutional data · 2q2025-4q2025
source: institutional data
Price targets
3-5 year target range
$70 $129
$82 current price
$100 target midpoint · +23% from current · 3-5yr high: $125 (+55% · 13% ann'l return)
source: institutional data · analyst targets

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